Customers of CoinBase beware that the U.S. government filed a civil petition November 17, 2016 in federal court seeking disclosure of all Coinbase U.S. customers’ records over a three-year period. The government has not alleged any wrongdoing on the part of Coinbase and its petition is predicated on sweeping statements that taxpayers may use virtual currency to evade taxes.
The statement from Coinbase is that its general practice is to cooperate with properly targeted law enforcement inquiries, they are extremely concerned with the indiscriminate breadth of the government’s request. Customers’ privacy rights are important to them and their legal team is in the process of examining the government’s petition. In its current form, they state that they will oppose the government’s petition in court. We will continue to keep our customers informed on developments in this matter.